Company Officeholders & Directors

What is a Director?

Directors are responsible for the management of a company’s business activities. Directors are only appointed in the case of companies (they’re absent from sole trader and partnership structures. 

Some of a director’s duties include:

  • to act in good faith in the best interests of the company and for a proper purposeto exercise care and diligence
  • to avoid conflicts between the interests of the company and your personal interests
  • to prevent the company trading while insolvent (i.e. while it is unable to pay its debts as and when they fall due)
  • if the company is being wound up, to:
    • report to the liquidator on the affairs of the company
    • help the liquidator (e.g. by giving the liquidator the company books and records that you may have in your possession)

Source: ASIC

July 08, 2016 10:54